The Principal Commissioner issued a show-cause notice u/s. 263 on the ground that the Assessing Officer had passed the assessment order without conducting proper inquiry and taking cognisance of the amended Finance Act, 2016 in respect of surrendered income and set aside the matter to the Assessing Officer to pass a fresh order in accordance with law and after providing reasonable opportunity to the assessee.

On appeal the Tribunal held, that the Principal Commissioner without taking into consideration the examination conducted by the Assessing Officer during the course of assessment proceedings had recorded a finding that the deeming provisions read with the provisions of section 115BBE were applicable. Where the Principal Commissioner disputed the nature of surrender or the findings of Department’s own survey team as well as those of the Assessing Officer, he had to lead positive evidence to arrive at a contrary finding. Nothing had been brought on record in this regard. Therefore, the order of the Assessing Officer could not be held erroneous in nature and that of the Principal Commissioner was to be set aside.(AY.  2017-18)